Coca-Cola Enterprises (NYSE: CCE) today reported second-quarter 2010 net income of $356 million, or 69 cents per diluted common share. Excluding items affecting comparability, second-quarter 2010 net income was $405 million or 79 cents per diluted share. The following table reconciles reported and comparable earnings per common share:

Key second quarter operating factors include solid European volume growth and in North America, modest volume growth, improved pricing trends, and lower cost of goods per case. In addition, efficiency and effectiveness initiatives contributed benefits in all territories. In the quarter, total revenues declined ½ percent and comparable operating income increased 18 percent. Excluding a negative currency impact, total revenue increased 1 percent and comparable operating income increased 21 percent. Comparable second quarter EPS results include a negative currency impact of approximately 3 cents. Pages 8 through 16 of this release provide a reconciliation of reported and comparable operating results.

“These results reflect strong day to day execution of key strategies and operating initiatives and our commitment to deliver against our full year objectives,” said John F. Brock, chairman and chief executive officer. “As we work to complete our transaction with The Coca-Cola Company and meet the challenges of weak macroeconomic conditions, we continue to focus on driving value for our customers, our consumers, and our shareowners.

“The success of these efforts has enabled us to increase our expectations for the year, with comparable earnings per share growth now in a range of $1.73 to $1.77 after including a negative currency impact of approximately 6 cents per share,” Mr. Brock said. “In addition, the transaction with The Coca-Cola Company remains on track to close during the fourth quarter.”

EUROPEAN RESULTS

Second quarter European revenue grew 5 percent and comparable operating income increased 13 percent both on a currency neutral basis. Including the impact of currency, second quarter European revenue declined 2½ percent and comparable operating income increased 5½ percent. Volume increased 5½ percent, with 3½ percent growth in Coca-Cola trademark brands, including 14 percent growth for Coca-Cola Zero. Still beverages grew more than 15 percent, driven primarily by expanded distribution of Capri Sun and the addition of Ocean Spray. Currency neutral net pricing per case increased modestly, and cost of sales per case decreased ½ percent.

“Europe achieved solid second quarter results through continued growth of our core Coca-Cola trademark brands, still portfolio expansion, solid execution of marketplace strategies and World Cup promotions, and the benefits of ongoing operating initiatives,” Mr. Brock said. “Many challenges remain, but we believe Europe represents an outstanding platform for long-term, profitable growth.”

NORTH AMERICAN RESULTS

North American results reflect the benefits of volume growth, modest sequential pricing improvement through price/package architecture initiatives, lower cost of sales, and operating expense control. Revenue increased ½ percent and comparable operating income grew 21 percent. Excluding the impact of currency, revenue declined ½ percent and comparable operating income increased 19 percent. Second quarter volume grew ½ percent through a combination of customer-driven promotional activity and ongoing marketplace initiatives. Core Coca-Cola red, black, and silver brands grew volume 1½ percent, including growth of 12 percent for Coca-Cola Zero. Additionally, second quarter results benefitted from a 2½ percent increase in single-serve beverage volume. Pricing per case declined modestly and cost of sales per case was down 3 percent.

“Strong North American operating income growth represents a combination of pricing diligence amid a dynamic and competitive marketplace environment, the benefits of our operating and effectiveness initiatives, and lower cost of goods,” said Mr. Brock. “Going forward, we remain committed to our North American marketplace strategies that are built around our price/package architecture initiatives, and believe North America continues to offer solid long term growth opportunities.”

FULL-YEAR 2010 OUTLOOK

Management now expects full-year comparable 2010 earnings per diluted common share in a range of $1.73 to $1.77. This range includes an expected negative currency impact of approximately 6 cents per share and excludes nonrecurring items.

Operating income is expected to increase in a 10 to 12 percent range, with mid single-digit growth in North America and high single-digit growth in Europe. Corporate operating expenses are expected to be below prior year. The company expects revenue to increase at a low single-digit rate, with mid single-digit growth in Europe and flat to low single-digit decline in North America. This guidance excludes items affecting comparability and is currency-neutral.

The company now expects strong free cash flow of approximately $900 million and capital expenditures of approximately $1 billion. Interest expense is expected to decline. The effective tax rate for 2010 is expected to be approximately 26 percent.

This guidance reflects the structure of CCE prior to the completion of the pending transaction with The Coca-Cola Company.

TRANSACTION WITH THE COCA-COLA COMPANY

The previously announced transaction with The Coca-Cola Company is on track to close in the fourth quarter of 2010. As disclosed, The Coca-Cola Company will acquire our North American business. At the same time, CCE’s European operations will be split-off and will acquire The Coca-Cola Company’s bottling operations in Norway and Sweden. The transaction has moved forward in several key areas. We received positive notification from the European Commission in May and have recently executed an amendment to CCE’s credit facility that will support the separation of the North American and European businesses. Key remaining steps include completing the Securities and Exchange Commission’s review of the registration statement for the transaction, a ruling by the Internal Revenue Service, and antitrust approvals in the United States and Canada. In addition, shareowner approval is required and we will announce a meeting of shareowners for this purpose at a later date.

After completing the transaction, CCE expects to repurchase approximately $1 billion of its shares within the following 18 months, and pay an expected annual dividend of $0.50 per share, all subject to the approval by CCE's Board of Directors. These plans may be adjusted depending on economic, operating, or other factors.

At close, new CCE anticipates having approximately 350 million fully diluted shares outstanding and net debt of approximately $2 to $2.5 billion. We expect to have financing in place by the end of the third quarter. We will provide a more detailed update on the outlook for new CCE later this year.

CONFERENCE CALL

CCE will host a conference call with investors and analysts today at 10 a.m. ET. The call can be accessed through our website at www.cokecce.com.

Coca-Cola Enterprises Inc. is the world's largest marketer, distributor, and producer of bottle and can liquid nonalcoholic refreshment. CCE sells approximately 80 percent of The Coca-Cola Company's bottle and can volume in North America and is the sole licensed bottler for products of The Coca-Cola Company in Belgium, continental France, Great Britain, Luxembourg, Monaco, and the Netherlands. For more information about our company, please visit our website at www.cokecce.com.

FORWARD-LOOKING STATEMENTS

Included in this news release are forward-looking management comments and other statements that reflect management’s current outlook for future periods. As always, these expectations are based on currently available competitive, financial, and economic data along with our current operating plans and are subject to risks and uncertainties that could cause actual results to differ materially from the results contemplated by the forward-looking statements. The forward-looking statements in this news release should be read in conjunction with the risks and uncertainties discussed in our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K and subsequent SEC filings.

IMPORTANT ADDITIONAL TRANSACTION INFORMATION AND WHERE TO FIND IT

This communication may be deemed to be solicitation material in respect of the proposed transaction. In connection with the proposed transaction and required shareowner approval, Coca-Cola Enterprises Inc. (“Company”) will file relevant materials with the Securities and Exchange Commission (the “SEC”), including a proxy statement/prospectus contained in a Form S-4 registration statement, which will be mailed to the shareowners of the Company.

Shareowners of the Company are urged to read all relevant documents filed with the SEC, including the proxy statement/prospectus when it becomes available, because they will contain important information about the proposed transaction.

Shareowners may obtain a free copy of the proxy statement/prospectus, when it becomes available, and other documents filed by the Company at the SEC’s website at www.sec.gov. Copies of the documents filed with the SEC by the Company will be available free of charge on the Company’s website at www.cokecce.com under the tab “Investor Relations” or by contacting the Investor Relations Department of Coca-Cola Enterprises at 770-989-3246.

PARTICIPANTS IN THE SOLICITATION

Coca-Cola Enterprises (“Company”) and its directors, executive officers and certain other members of its management and employees may be deemed to be participants in the solicitation of proxies from its shareowners in connection with the proposed transaction. Information regarding the interests of such directors and executive officers was included in the Company’s Proxy Statement for its 2010 Annual Meeting of Shareowners filed with the SEC March 5, 2010 and a Form 10-K filed on February 12, 2010 and information concerning the participants in the solicitation will be included in the proxy statement/prospectus relating to the proposed transaction when it becomes available. Each of these documents is, or will be, available free of charge at the SEC’s website at www.sec.gov and from the Company on its website or by contacting the Investor Relations Department at the telephone number above.